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Organizational Structure and the Best Structure Based on Current Business Strategy

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Smartphones have seen good growth judging from the high percentage of people using them. This means the smartphone provider industry is experiencing growth.

In 2011, Nokia announced a strategic partnership with Microsoft, a new strategy and a new internal organization. Reuters.com (2011) reported on the changes:

"With Nokia's planned move to Windows Phone as its primary smartphone platform, Symbian becomes a franchise platform, leveraging previous investments to harvest additional value. This strategy recognizes the opportunity to retain and transition the installed base of 200 million Symbian owners. Nokia expects to sell approximately 150 million more Symbian devices in the years to come."

"As of April 1, Nokia will have a new company structure, which features two distinct business units: Smart Devices and Mobile Phones. They will focus on Nokia's key business areas: high-end smartphones and mass-market mobile phones. Each unit will have profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including product development, product management and product marketing."

Sadly, that did not pan out.
How would you describe Nokia's organizational structure using THE FOLLOWING concepts "functional versus divisional versus conglomerate; centralized versus decentralized; mechanistic versus organic"?
Debate whether these changes help the company to execute its strategy going forward.
How does Nokia's structure compare to OTHER employer's structure?

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Solution Summary

An examination of the main organizational structure utilized by Nokia. Also, a review of the best strategy based on the organizational structure. Attached as Word.

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You are an I/O consultant who has been hired by Kathy Kudler, President of Kudler Fine Foods, to provide her with recommendations for a new organizational structure to increase organizational effectiveness. The background information regarding the company may be found on the Internet portion of the Virtual Organization and the details regarding the internal structure of the organization may be found on the Intranet portion of the Virtual Organization. On the Intranet site for the organization, refer to the sections entitled:

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? Create an organizational chart.

? Present the owner of Kudler Fine Foods with an alternative organizational structure.

? Include the following:

o Justification of the alternative design or of the decision to remain with the current structure.
o Summary and explanation of changes in authority and control.
o Summary and explanation of changes in areas of specialization.
o Summary and explanation of changes of coordination.

? Provide rationale as to why there are no changes if you have identified no changes in authority and control, areas of specialization, or changes of coordination.

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